Today I’m interviewing my social media director and assistant, Hayley Rodriguez on the topic of “Top 5 financial lessons your parents taught you”. She is a University of Texas at Austin 2016 graduate. She has been working for me for a little over a year. Starting this month, Hayley will continue to work for me, while simultaneously earning her masters in advertising. Hayley is a very focused young lady. As a millennial, she now makes up the nation’s largest living generation, surpassing Baby Boomers 75 to 74 million. Today, I wanted to visit with Hayley about her personal view of money, learn how she makes financial decisions and discuss the “Top 5 financial lessons your parents taught you”.

Hayley and her parents at UT Austin 2016 graduation.

Why the Top 5 Financial Lessons Your Parents Taught You are Important

ES: What would you say are the top 5 things your parents taught you about money?

HR: 1) Know The Difference Between Wanting And Needing

In our materialistic society, more is often seen as better.I’m guilty of being caught in that mind snare more often than not. However, my parents always reinforced the importance of knowing the difference between want and need. Being in the world of advertising has not spared me from being susceptible to ads. Every time I see influencers raving about a new product, a signal goes off in my brain and I think it’s time for a Target run. But being on my own financially, I have now created a budget using your budget planner. I know I only have a certain amount of money allotted towards beauty. I won’t have any money to spend on things I actually need, if I spend my money on repetitive wants.

ES: That is very wise my friend. I’m so excited that you have learned this lesson already. What else did your parents teach you?

HR: 2) Buy Quality

I recently went to Hawaii with my family and forgot a pair of flips flops; I know, I don’t know how. Anyways, I went to a shop close to the hotel that was having a spring blow out sale and scored a pair for $6. I thought I got a good deal and I saved money that I could spend elsewhere. Well, not even 30 minutes after walking around in them, I started to develop really bad blisters. I ended up having to go into a different store and buy a sturdier and more expensive pair. When you buy something that will last, you’re saving money from having to replace the item over and over again. This was a good financial lesson!

ES: It’s funny that you mention this. I often tell people to buy good quality shoes and a good quality mattress. You spend most of your life wearing shoes or sleeping. These are two items you don’t want to buy “cheap.”

HR: 3) My parents really stressed the following: Tithe 10%, Save 10%

A good habit my dad instilled in me right when I started receiving a paycheck was to immediately tithe 10%, and then save 10% of each paycheck. The money I earn is not mine, but God’s, so I want to be a good steward of what He’s given me. Doing this early on has helped me create a palms open position with God. It has also helped me trust in Him to provide everything I need.

ES: Your dad is exactly right! This is a perfect example of parents leading by example and passing their values on to the next generation. We need parents to lead their children and teach them well how to manage money God’s way before they leave the nest. Did you learn any lessons specifically from your mom about money?

HR: 4) Keep Cash on Hand

A good tip my mom taught me was to keep my extra spending money in cash. Instead of using my debit card to pay for the fun things I’ve budgeted, using cash is a tangible way to see how much money I’m spending on something. So when I’m thinking about going to Starbucks for that $5 latte and have only $60 to spend for the week, I pause and then question if that’s the best use of my money. More often than not, I quickly decide to save my cash for something else. Another a good financial lesson!

ES: I think your mom and I are kindred spirits. I know you’ve heard me say this a thousand times. You probably hear me say this in your dreams. Lol! “Cash is Queen Hayley! Everything in life is a little easier if you have some cash on hand.”

HR: 5) Finally, I have also learned to Comparison Shop

Whether it’s shoes, appliances, or home goods, chances are there is another retailer out there selling the same exact item for a lower price. The internet has made is so easy for consumers to become savvy shoppers. We can now price check things online and retailers know that. Retailers are all competing with one another to offer consumers the lowest price in order to earn a sale. Double-checking what other retailers are selling an item for can save you a couple bucks, or even a couple hundred bucks. It never hurts to check.

ES: I love to comparison shop online too. I often look for a coupon code when I buy something online. Occasionally, I can save a little more money just by taking a few minutes to search for a current coupon before I make the purchase. Did you know that you can do this when you are in a retail store too? I look for a coupon online whenever I’m waiting in line to purchase my goods. For example, I was buying a wedding present last weekend for a young couple at one of the big box retail stores. I found a coupon by searching online on my phone for an extra 20% off while I was waiting in line. The less I spend on the exact same items or goods, the more money I keep in my pocket!

Are the lessons your parents teaching you proving to be true or not, helpful or not?

HR: I think everything they have taught me has been very helpful and I’m so thankful I have great parents who are good with money. They have helped me make the adjustment into the adult world.

ES: Yay! Your parents have launched you instead of coddled you. We need more parents like yours in our world today!

Also, is there anything they did not teach you that you wish they had?

HR: I wish I had learned more about investing, what a 401k is, saving for retirement, etc. These are all big subjects that were briefly touched on, but it’s something I still don’t understand.

ES: Well, I happen to know a little about 401k plans, saving for retirement, and investing so I can help you with those questions.

Hayley, you’re a great example of a young lady that is pursuing her education, learning to live within her means, while still saving and tithing, and trusting God through it all. Thank you for being a part of my company. I have really enjoyed spending some time today at the farm-house talking about your views on money.

HR: My pleasure! Any time.

#FaithfulFinance

Do you have a financial question, or need encouragement or guidance in a certain area? I would be honored to hear from you. Please complete our online contact form, and I will be in touch shortly. Remember: you’re not alone in your finances!

I don’t want you, my reader friend, to be living one flat tire, medical bill, or broken household appliance away from financial devastation. Trust me, it’s such a stressful way to live your life.

Now take a deep breath. I have good news for you. There is hope and there are ways to be proactive with your finances, rather than reactive. Proper financial planning is the key to avoiding many financial pitfalls. The most basic financial planning task, but the most critical for success, is a realistic monthly budget.

I want to encourage you to see creating a budget as a way to be responsible and respectful of the resources that God has entrusted you with. What you give attention to in your life is what you will gain affection for. What you have affection for changes your activities and attitude. If you truly love God and want to show affection for him, one of the ways to do that is to actively and responsibly manage your personal finances.

If you have a realistic monthly budget that you actually commit to follow, it will allow you to live a more fruitful and peaceful life from a financial standpoint. You will have a handle on how much income is coming in to your household and how much money is being spent each month. Also, careful budgeting ultimately allows you to give a portion of your income to kingdom causes, such as your local church or non-profit organizations, because you are not spending more money than you earn. There are missionaries, pastors, and non-profit organizations all over the world that are currently acting as the hands and feet of Christ by serving God’s people. They could truly benefit from your financial support so they can continue to do the kingdom work that God has called them to do. Stop and pray right now about whether or not your budget is being properly managed. Do you currently have a tithe or financial offering as part of your monthly budget? If not, consider starting with a small portion of your income each month and see if God blesses your finances.

The biggest objection I hear is that people do not know where to start when it comes to actually sitting down and creating a budget. As a result, I have done all of the hard work for you because I believe this is so important. Simply login to my website: www.emilygstroud.com and enter your email address when prompted. I will then send you a complimentary budget worksheet. All you have to do is fill in the blanks and then add and subtract. That’s it. So no more excuses!

I recently had the opportunity to meet Texas Governor Greg Abbott. He currently is travelling around the state of Texas on a tour to promote his new book. We have the same literary agent so I had the opportunity to pass along a copy of Faithful Finance to him as well.

Greg Abbott is a very strong leader and he is quite resilient. He has a long and impressive resume. However, what I admire most about him is that he stands up for what he believes and he is an overcomer. I have the utmost respect for someone who has walked through fire but is not burned.

Greg Abbott had everything going for him in his early 20’s. He was doing his best to set himself up to live happily ever after. At the age of 26, he was a newlywed, had just graduated from law school, and had accepted a job at a prestigious law firm in Houston, Texas. All he had left to do before he started his new job was to pass the Texas Bar Exam so he would be licensed to practice law.

Abbott had always been a very good athlete. While in law school, he often went running to clear his head and get some much-needed exercise. He said it was his best therapy. Just like he did every other day while studying for the Bar exam, he went for an afternoon run along a neighborhood street in Houston. This was his normal routine. Suddenly out of nowhere, a huge oak tree that had been damaged in a previous storm, fell on top of him and trapped him so he could not move. Unexpectedly, he became paralyzed at the age of 26. All of a sudden, his happily ever after story was about to take a major detour.

When tragedy strikes, we all have two choices: either get busy living or get busy dying. Mr. Abbott was a fighter. He endured multiple surgeries, months of physical therapy, and many painful procedures. He chose the hard road to living again. He believed that even though he would be confined to a wheelchair for the rest of his days, he could still live a very full life. He already knew he could use his story of tragedy and triumph to inspire others. Mr. Abbott did not give up on his dreams, he just modified them to reflect his new normal. Being in a wheelchair has not slowed him down at all. I encourage everyone to get a copy of his new book, “Broken But Unbowed: The Fight to Fix a Broken America.”

Mr. Abbott has waged a number of legal challenges against the federal government because he believes our country has become unhinged from the Constitution. He believes the Constitution that formed our country has been broken. However, the people of America are NOT broken. It is our responsibility as concerned citizens to help restore America. We need more people willing to stand up and lead, both in our government and in our local churches.

I have been inspired by Mr. Abbott as well to get involved in local issues that affect my community. If we do not voice our opinions and concerns to our elected representatives, we have no one to blame but ourselves. I want to encourage all citizens to make sure your voice is heard. If you have a strong opinion on an issue, write to your mayor, your state representative, the Attorney General, and the Governor of your state. Believe it or not, they actually do want to hear from you and what your position is on an issue. We must not forget that they have been elected to office in order to vote for issues according to the will of their constituents.

Whether we like it or not, our local cities, states, and federal government receive a lot of our hard-earned money through sales tax, property taxes, and federal income tax. If we are going to do our best to help our government be a wise steward of our money, we better let them know that we still believe in America and the right to be heard. If you do not like the direction that our country is moving in, do not sit on the sidelines. Get involved. Be a leader!

Student loans are often the only way a young adult can afford to obtain a college degree. I personally had student loans after attending graduate school to get my MBA. Yes, I was a little scared when I graduated about how I would be able to pay them off. I really did not like the idea of being in debt. Is it possible that you currently have student loans and feel the same way?

I was recently asked about my thoughts on this particular topic. Since many young adults will be graduating from college this month, let me answer a few of the most common questions I get based on what I have learned over the years.

What tips would you give a recent college graduate with student loans?

Please do not feel ashamed of having student loans! Having school debt is not a punishment and is not something to spend valuable time dwelling on or worrying about.

Did money fall out of the sky to pay off my loans? No. However, I embraced the fact that I was an adult and I took responsibility for paying back what I owed.

What strategies work in quickening the process of paying off student loans?

The best way to pay off student loans is systematically, every single month.

If you are disciplined and focused, little by little, you will pay off your loans and eventually be debt free. You will also have the gift of an education, which is an asset no one can ever take away from you.

I recommend paying as much as you can afford to pay, above and beyond the minimum required payment, every single month.

You will temporarily have to live well below your means, but the long-term benefit of being debt free is well worth the short-term sacrifice.

Here is a real life example:

If your monthly minimum required student loan payment is $300 per month, budget anywhere from $50 to $200 per month extra that can be allocated towards reducing your student loan debt. This strategy will allow you to pay down the principal of your student loan much faster. Having a proactive plan to pay off your debt will shave years off of the time you have to make monthly payments.

Automate your payment so it comes out of your checking account before the monthly payment is due. You never want to be late when making your student loan payments. This will strengthen your credit score, which is very important when starting out as a young adult. A high credit score will help you purchase a home when you reach the point in life where you are ready to put down some roots.

If you are not sure how much you can afford to allocate each month to reducing the monthly principal of your student loans, take some time to create a detailed monthly budget.

In order to eliminate any possible objections to this strategy, I have taken the hard part out of creating a budget. If you go to emilygstroud.com and enter your email address, I will be happy to send you an electronic version of a detailed monthly budget worksheet. All you have to do is fill in the blanks on the worksheet and add and subtract. There are no excuses now!

Once you have a realistic budget, decide how much extra income you can allocate toward paying down your overall student loan balance each month. Then put a plan in place.

Do not think of the extra income you are allocating to paying off your debt as negotiable or optional.

If you stick to your financial plan, you will be out of debt as quickly as possible!

Most importantly…to the class of 2016 at Texas A&M, Gig’Em Aggies!

Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.
Romans 13:7 (NIV)